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Good morning,
Hot CPI numbers just came out and the markets have fallen off a cliff! From futures being up 25 to down 75 is going to cause some serious nervousness and volatility today in the markets! PLEASE BE CAREFUL OUT THERE TODAY!!
As of this writing, futures are much lower with overnight inventory actually net long, however, that has been completely erased and longs have gotten smoked! We have now gapped outside of yesterday's range below 5208.25. First course of action today will be to see if there is any kind of fade higher back into prior days range. IF not then this is a very bearish sign.
The key levels posted in the profile pic and target levels below have already been taken out to the downside. This does not happen very often but as I have been warning the past two days, volatility will pick up today and through the rest of the week and it has done exactly that. When this happens, unless you have experience trading in this kind of volatile market, please sit on your hands!!! The moves will be massive and while there are opportunities during the day, sometimes the risk is greater and you are better off waiting for the market to calm down a bit and protecting your capital. We still have FOMC minutes this afternoon @ 2:00 PM EST!
VPOC Update: No Change. We still have 1 above @ 5297.75 and 19 still below. 5183.75 and 5156 could be in play today!
TARGETS AND KEY LEVELS TO WATCH:
/ES upside target is: 5290 - 5297 (VPOC from last Thursday 5297.75)
Key Levels: 5255 Overnight Low & Value Area High
downside target is: 5205 - 5200 Lower VPOC's are now target levels.
/NQ upside target is: 18,460 - 18,475
Key Level: 18,330 - 18,340 Overnight Low & Value Area High
downside target is : 18,220 - 18,205
/RTY upside target is: 2120- 2125
downside target is: 2085 - 2080
Economic Data: RED STAR EVENTS TODAY
CPI 8:30 AM EST
Crude Inventories 10:30 AM EST
FOMC Minutes 2:00 PM EST
More Color.......
/ES - Key Demand at $5165- 5180 with Supply above at $5275 then at $5300
- Buyers breakout out and hold above $5300 I will look to play long target $5330
- Sell off below $5230 with a break and retest looking to play short targeting $5200
SPY - Key Demand at $512-513 with Supply above at $520 -521 and at $525-524
- Buyers fail to break out and hold above $524 I will look to play short off a break
and retest targeting $523 then $521.80
- Sellers fail to break below $517 after a sell off finds support. I will look to play
long. A breakdown below leaves Demand with LOD at $512 - 514
SPX - Key Demand at $5130 - 5160 with Supply above at $5231 then at $5250-65
- Buyers trapped at the open below $5232 I will look to play short targeting $5200
- Sell off fails to break below $5160 and I will look to play long off a break and
retest targeting $5185 first then $5200
/NQ - Key Demand at $18000. 18200-50 with Supply above at $18430- 18400
- Buyers trapped at the open below $18575 looking to play short targeting $18500
- Sellers trapped at the open above $18200 looking to play long targeting $18300
- A break down below $18200 I will look to play short targeting $18100
QQQ - Consolidating inside Supply at $443-444 with Demand below at $438-439
- Buyers break out above $444 I will look to play long off a break and retest
targeting $446 then $447. Buyers trapped below $444 I will look to play short.
- Sell off below $438 I will look to playing short targeting $436 ten $434
AMD - Balanced range at $172-174 with Demand below at $165-166
- Waiting for a break out above $174 before playing long targeting $176 then $178
- Buyers trapped below $174 I would like to play a break and retest from $173
targeting $169 then $167
TSLA - Consolidating inside Supply at $179-177 with Demand at $160-162
- A break out above $179 I will look to play long off a break and retest from $178
targeting $180 then $182. Only playing short if price hold below $170 target $168
As ALWAYS, have your stops in place!!!
Have an awesome day!
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